The country’s largest drinks and hospitality company has seen its wide-ranging restructuring programme put a hole in its balance sheet, with investors cautious for the future.

CEO Jayne Hrdlicka said that Endeavour Group’s move to sell off the majority of its wineries – as part of a roughly $300 million savings scheme – has made the BWS and Dan Murphy’s owner “well placed” for future growth.

But the outcome of these decisions has been shared with investors on the ASX. Fiscal 2026 brought a 14.8 per cent decline in after-tax profits, and a 17.6 per cent decline in earnings before interest and tax (EBIT).

Once the $311 million in charges from asset write-downs and restructuring are included, Endeavour’s profits fall from $426 million in 2025 to an expected $52 million in fiscal 2026, an 87.8 per cent decline year-on-year.

“After a comprehensive review of our portfolio, we have reassessed the carrying value of some of our assets, including legacy technology systems, wineries and vineyards and a small number of retail stores and hotels,” Hrdlicka added.

“Following the reset of our asset base and simplification of our portfolio, we are now well placed to focus our capital and resources on maximising the value of our core businesses through our multi-year business transformation strategy.”

Retail sales lifted by just 0.7 per cent for Endeavour; hospitality sales grew by 4.2 per cent. Year-end, group-wide sales stood at $12.2 billion.

The closure of the Woolworths-operated Melbourne Liquor Distribution Centre (MLDC), scheduled for 2028, is set to cost Endeavour $40 million in exit costs. 

Across its asset portfolio, the group took a $194 million non-cash write-down to adjust the carrying value of underperforming assets. 

This included a $78 million hit from its vineyard and winery assets, a $67 million impairment across 25 hotels, and a $45 million impairment across 75 retail locations.